Support export to help Italy grow.This is our mission, as indeed it has been for the last forty years. A constant, essential goal that we pursued even in 2016 – a year we now review through the results and challenges we faced alongside Italian businesses. Stronger than ever, thanks to our participation in the Italian Export and Internationalisation Hub together with SIMEST.

Highlights 2016

In 2016we mobilised resources to the tune of

22

billion €

+30%

2006

32

2007

37

2008

46

2009

60

2010

69

2011

74

2012

72

2013

72

2014

74

2015

81

2016

87

Our investment portfolio has reached

87

billion €

601 M €

Gross premiums

374 M €

Claims paid

482 M €

Net profit

5,262 M €

Equity

2,980 M €

Technical reserves

Overview

Messages by the Chairman and the CEO

We expect years of rethinking globalisation, during which the role of the Italian Export and Internationalisation Hub will become more crucial

Beniamino QuintieriChairman

We close 2016 with some great results. Strong growth in line with our targets in terms of economic and financial sustainability

Alessandro DecioCEO and General Manager

We will be mobilising 111 billion euros by 2020, maximising support and the positive impact on the economy and Italian businesses

Our numbers

Performance

Resources mobilised

In 2016, the Italian Export and Internationalisation Hub (Polo italiano per l’export e l’internazionalizzazione) mobilised a total of 22.4 billion euros in resources to support businesses operating on export markets, up 30.5% compared to 2015. It is the highest level ever recorded in SACE’s history, a result that was made possible thanks to the contribution of all companies participating in the Italian Export and Internationalisation Hub.
The new guarantees provided by SACE totalled 13.2 billion euros (+35%), of which 86% relating to operations in support of export and 14% in support of internationalisation.
SIMEST mobilised an overall amount of 544.3 million euros, of which 326.3 million euros (+20%) in subsidised loans and equity investments and 218 million euros in support of export. In addition to this, there is the interest rate subsidy relating to export finance transactions guaranteed by SACE to the tune of 5.6 billion euros.
SACE BT mobilised a total of 5.9 billion euros in resources, of which 3.8 billion euros through credit insurance initiatives, up 68% on the previous year.
The turnover recorded by SACE Fct totalled 2.7 billion euros (up 9%), with the addition of 1.8 billion euros for export credit transactions guaranteed by SACE.

Revenues

Considering the whole scope of activities managed by SACE and its subsidiaries, total revenues amounted to 671.5 million euros, of which 89.5% generated by the insurance business and the remaining 10.5% by the financial business.
Gross premiums amounted to 600.9 million euros, up 7.3%, of which 87% generated by activities in support of export and internationalisation managed by SACE and the remaining 13% by activities managed by SACE BT.
Revenues from financial activities consisted of the net trading income recognised by SIMEST (45.3 million euros) and SACE Fct (25 million euros).

Claims and debt recovery

Consolidated claims reimbursed paid in 2016, net of reinsurance, amounted to 373.8 million euros, up 31% on 2015.
Receivables collected by SACE from sovereign counterparties amounted to 731.4 million euros, increasing significantly compared to the 169.3 million euros of 2015. In addition, 23.1 million euros for the recovery of trade receivables were also recognised. More than 70% of sovereign receivables were recovered from Iran, the remaining 30% from Iraq, Egypt, Argentina, Ecuador and Cuba.
SACE BT trade receivables collected amounted to 4 million euros net of legal expenses, and were basically in line with the previous year’s figures.

Results

Consolidated net income amounted to 481.9 million euros (of which 481.1 million pertaining to the group and 0.8 million pertaining to third parties), up 56% on the 2015 result (309.8 million).
This result was partly the effect of financial activities to the tune of 363.9 million (as compared with 672.1 million at 31 December 2015) and of proceeds deriving from sundry receivables to the tune of 240 million euros (with respect to 50 million at 31 December 2015).

Our commitment

Engagement

More support to exportand internation-alisation

Closer to Italian businesses

More value generated

Focus1

Today, more than ever before, we need to fruitfully and effectively cooperate to strengthen, through organic, structured strategies, the internalisation projects that generate development for Italy. Focussing on export and internalisation is therefore no longer merely an opportunity; it is a necessity.

SACE has been helping in this sense for forty years now, by supporting small, medium and large Italian businesses in their growth plans abroad, assisting them in the selection of markets that offer the greatest potential and in managing the risks connected with the operations in an increasingly complex international framework.

After the integration of SIMEST and SACE, this commitment has grown even further and lead to the creation of the Italian Export and Internationalisation Hub. Thanks to this integration, Italian businesses today have a single point of reference to access the CDP Group offer, suitable to accompany them through all stages of their export growth plans.

The new 2016-2020 Business Plan will make SACE even more focussed on the peculiarities of the Italian business world, making more and more resources available — 111 billion euros, 50% more than the previous plan — and providing a complete range of insurance-financial solutions to securely grow on international markets.

Focus2

Working alongside businesses means guaranteeing effective contact points, timely support and sharing expertise, by strengthening collaboration with local partners.

With 14 offices in Italy and 10 abroad, SACE supports businesses directly in the country where they operate, both in the various Italy’s regions and in foreign markets with the highest potential. Now this network has been strengthened thanks to the synergies within the CDP Group and it has become more effective thanks to the consolidation of relations and strategic partnerships with local banks and stakeholders and the launch of the Front Office Excellence programme, which boosts the sales team’s activities to the benefit of customer services.

In order to really support businesses, access to and easy use of the services most in demand by SMEs are a priority: such activities will increasingly involve, also on the basis of the new SACE Business Plan, the simplification and digitisation of the offer and the strengthening of all on- and off-line remote contact channels.

Support to internationalisation and growth, attention to people and company welfare, social-environmental commitment: the role played by a major country entity as is SACE requires responsibility and awareness of the impacts and value generated with its business.
Corporate social responsibility is evolving towards a new approach, focusing on a more complete assessment of the contribution offered to social and economic development: corporate shared value.

In 2016, SACE pursued precisely this new approach, starting out from a structured comparison with an extensive, diversified basket of more than 400 stakeholders (businesses, banks, opinion leaders and media, employees and top managers of the company). Such efforts culminated with the publication in 2016 of the very first Sustainability Report, focusing on the measurement of corporate shared value and prepared in accordance with the most recognized international standard for this type of reporting (G4 guidelines of the Global Reporting Initiative).

Our experience Your success

Case Histories

SACE has guaranteed the supply of machinery for the production of consumer goods by the Cremona-based company GDM and some other Italian SMEs, to a large industrial Turkish group, for a total amount of more than 30 million euros. GDM is part of the Coesia group, world leader in the development of automatic machines and industrial process solutions in various sectors of mechanics.

In Turkey

with GDM

SACE has provided insurance cover for the supply of six Merlo P.32 6EE telehandlers worth more than 300 thousand euros, intended for the Mongolian market. The Merlo Group is a Piedmont-based leading company in telehandlers with rotating turret and hydrostatic transmission.

In Mongolia

with Gruppo Merlo

SACE has provided insurance cover for the supply of electric generating sets worth a total of 85 thousand euros, by the Campania-based company Coelmo to its Indonesian counterpart, intended to reconstruct the mobile network of Sumatra and surrounding islands. Coelmo is a Campania-based company that designs and produces industrial and marine generating sets of 3 to 3,000 kVA.

In Indonesia

with Coelmo

SACE has provided insurance cover for the supply of farm equipment made by the Potenza-based Cicoria for its customers in North Africa, Argentina and Kenya for a total amount of over 800 thousand euros. Cicoria develops threshing machines and pick-up balers which can continue operating without interruptions in the most difficult environmental conditions.

In Kenya

with Cicoria

SACE and SIMEST have supported Prysmian in the work and supply activities relating to the international project North Sea Link for a total of 519 million dollars. The project, worth 2 billion euros, consists in the development of a submarine power connection with a capacity of 1,400 MW between the United Kingdom and Norway. With its 730 kilometres, it will represent the world’s longest infrastructure of this type.

In Norway

with Prysmian

SACE has guaranteed a credit facility of 400 thousand euros, provided as part of the “2i per l’Impresa” programme, to support the innovation and international growth of the Sicilian Montalbano Recycling. The company is an SME specialised in technologies for the treatment and recycling of waste materials.

In UAE

with Montalbano Recycling

As part of the “2i per l’Impresa” programme, SACE has guaranteed a loan of 800 thousand euros in favour of Osai Automation System, which will allow the company to develop an innovative research project and will provide it with a competitive advantage in its growth process in North America, Europe and Asia. Osai is a Turin-based SME specialised in technologies for the automation of industrial processes.

In North America

with Osai Automation System

SACE has guaranteed the subscription of a 10 million euro bond subscribed by Fondo Sviluppo Export (Export Development Fund) and issued by the Bergamo-based Fine Foods & Pharmaceuticals NTM, with the aim of financing the construction of two new plants and growing on international markets. Fine Foods is a leader in the development of pharmaceutical and nutraceutical products.

Worldwide

with Fine Foods & Pharmaceuticals NTM

SIMEST has subscribed a 15 million euros share capital increase in favour of Consorzio Casalasco del Pomodoro, a leader in the production and packaging of “Pomì” brand strained tomatoes and tomato sauces. The investment will allow the Cremona-based company to develop an extensive programme of investments in plants, processes and products destined for North America, Asia and the Middle East.

In the Middle East

with Pomì

SACE has provided insurance services against the risk of non-payment to the Apulia-based Casillo Group for a total amount of 340 million euros. Casillo purchases, transforms and markets wheat, also thanks to trading activities.

Worldwide

with Casillo

SACE has collected the total amount of 2.7 million dollars claimed by the Italian oil company, ERG, with regards to an Iraqi state counterparty and deriving from demurrage contract penalties.

In Iraq

with ERG

SACE has entered into an agreement with Fincantieri to allow SMEs working in the Italian construction group’s supply chain to transfer their receivables, obtain early payment of supplies made and develop the best possible new supply contracts.

Worldwide

with Fincantieri

SACE has guaranteed loans for a total of 50 million euros, provided to Elica for the acquisition of a 70% stake in a Chinese company and for investments in R&D activities and projects boosting production efficiency. Elica is a Marche-based group, world leader in the kitchen hoods sector.